The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 32,000 shares of no-par common stock in exchange for $320,000 in cash. 2. Purchased equipment at a cost of $42,000. Cash of $11,000 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $82,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $130,000. The cost of the goods sold was $72,000. 5. Paid $5,200 in rent on the warehouse building for the month of March. 6. Paid $6,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $72,000 on account for the inventory purchased in transaction 3. 8. Collected $57,000 from customers on account. 9. Recorded depreciation expense of $1,200 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 32,000 shares of no-par common stock in exchange for $320,000 in cash. 2. Purchased equipment at a cost of $42,000. Cash of $11,000 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $82,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $130,000. The cost of the goods sold was $72,000. 5. Paid $5,200 in rent on the warehouse building for the month of March. 6. Paid $6,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $72,000 on account for the inventory purchased in transaction 3. 8. Collected $57,000 from customers on account. 9. Recorded depreciation expense of $1,200 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 2-3 (Algo) T-accounts and trial balance [LO2-4]
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse.
1. Issued 32,000 shares of no-par common stock in exchange for $320,000 in cash.
2. Purchased equipment at a cost of $42,000. Cash of $11,000 was paid and a note payable to the seller was signed for the balance
owed.
3. Purchased inventory on account at a cost of $82,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $130,000. The cost of the goods sold was $72,000.
5. Paid $5,200 in rent on the warehouse building for the month of March.
6. Paid $6,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
7. Paid $72,000 on account for the inventory purchased in transaction 3.
8. Collected $57,000 from customers on account.
9. Recorded depreciation expense of $1,200 for the month on the equipment.
Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial
balance from the ending account balances.
Complete this question by entering your answers in the tabs below.
T Accounts Trial Balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45cb8d3e-fa26-41d0-994f-f8c3ac477362%2F46b6f0f8-04f6-44d0-9629-bd0ae3dbd156%2F6phq34_processed.jpeg&w=3840&q=75)
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eBook
Hint
Print
ferences
Exercise 2-3 (Algo) T-accounts and trial balance [LO2-4]
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse.
1. Issued 32,000 shares of no-par common stock in exchange for $320,000 in cash.
2. Purchased equipment at a cost of $42,000. Cash of $11,000 was paid and a note payable to the seller was signed for the balance
owed.
3. Purchased inventory on account at a cost of $82,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $130,000. The cost of the goods sold was $72,000.
5. Paid $5,200 in rent on the warehouse building for the month of March.
6. Paid $6,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
7. Paid $72,000 on account for the inventory purchased in transaction 3.
8. Collected $57,000 from customers on account.
9. Recorded depreciation expense of $1,200 for the month on the equipment.
Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial
balance from the ending account balances.
Complete this question by entering your answers in the tabs below.
T Accounts Trial Balance
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